Another Military Member Says Bank Wrongfully Foreclosed on His Home

A member of the Michigan National Guard says he was the victim of a <"">wrongful foreclosure while he was deployed in Iraq. Sergeant James Hurley, who served his country in the National Guard for 25 years before retiring, has been fighting the foreclosure since 2005. He took his lender – Deutsche Bank and Saxon Mortgage, a subsidiary of Morgan Stanley – to court in 2007.

“It’s been hell,” Sergeant Hurley recently told “You prove them wrong and they say, no no no, that isn’t right.”

Sergeant Hurley was on deployment in 2005 when he found out the bank had foreclosed on his home and forced his family out. His lawyers said the bank violated the Servicemembers Civil Relief Act, SCRA, by foreclosing without a court order.

According to, Hurley’s lender testified in court that their SCRA policy requires individual orders to get foreclosure protection. But his lawyer pointed out that such papers didn’t exist when he was deployed.

Hurley’s <"">wrongful foreclosure lawsuit is still in court. Unfortunately, his house was sold by the bank long ago. Now, according to, the best he can hope for is compensation and punitive damages.

Unfortunately, Hurley’s wrongful military foreclosure is not an isolated case. Earlier this month, another lender, JP Morgan Chase, acknowledged that it violated the SCRA by overcharging military families on their mortgages. The nation’s second largest bank has also admitted that it wrongfully foreclosed on more than a dozen military members.

In a statement, a spokesperson for JP Morgan Chase said that the bank had started mailing a total of about $2 million in refunds to families that may have been overcharged. The wrongfully foreclosed families have or will be getting their homes back, the statement said. JP Morgan Chase insists the “mistakes were inadvertent, not malicious.”

The SCRA is designed to protect troops and their families from financial stress while they’re in harm’s way. Under the act, active-duty troops generally get their mortgage interest rates lowered to 6 percent and are protected from foreclosure.

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